Nissan Makes Record Profits

announced that it expects to report record operating profits of $6.04 billion for fiscal year 2002, which ended March 31, 2003. In announcing its preliminary financial results for the full year, Nissan President and CEO Carlos Ghosn said, "Nissan's revival is a reality. Three years ago, our business was in accelerated decline. Today, we're not only back in the global race, we're among the pacesetters."

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Nissan expects to report consolidated revenues of $56.15 billion, up 10.6 percent from the prior fiscal year and an operating margin of 10.8 percent, which is the top level in the global automotive industry, the company said in a statement.

Fiscal year 2002 also marked the biggest product year in Nissan history, according to the company, with 12 all-new models representing 21 regional product events. Nissan sold 2,771,000 vehicles worldwide, an increase of 174,000, or 6.7 percent, over fiscal year 2001 sales. Fiscal year 2002 sales and market share increased in each region except Europe.

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"Our sales were made on the merits of our products themselves. They were not inflated by additional incentives," said Ghosn. "Our strategy continues to be based more on optimizing profitability than maximizing volumes."

State Attorneys General Warn Automakers About SUV Ads

Stop airing advertisements that could mislead consumers on the safety of sport utility vehicles, the attorneys general of 40 states and territories warned automakers.

Citing a press release from North Carolina Attorney General Roy Cooper, the Dow Jones Newswires reported that Cooper and the other AGs issued letters asking the auto manufacturers to review their SUV ads in light of a multi-state agreement with Ford in which the automaker paid $51 million to settle claims by state attorneys general that the company's advertising failed to disclose the rollover risk involved with driving sport utility vehicles.

The AG's letters ask manufacturers "to comply with the spirit and terms of that agreement," Cooper said. The letter was sent to DaimlerChrysler, BMW, General Motors, Honda, Hyundai, Isuzu, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Subaru, Suzuki, Toyota, and Volkswagen.

"The attorneys general are particularly worried about SUV advertisements that blur the handling distinction between SUVs and passenger cars, tout cargo volume without explaining safe weight limitations and exaggerate the vehicles' high-speed maneuvering capabilities," Cooper said. "We believe that the failure to disclose this material information, or to wait until after the sale to disclose it, constitutes a deceptive and unfair trade practice under most state consumer laws."

Specifically mentioned in the letter as misleading are ads that describe SUVs as "car like," Cooper said. The letters point to data from the National Highway Traffic Safety Administration that SUVs are three times more likely to roll over than passenger cars, the DJN said.

Subaru Prices 2004 Impreza WRX STi

says the Manufacturer's Suggested Retail Pricing (MSRP) for the all-wheel drive 2004 Impreza WRX STi is $30,995, which does not include a "destination and delivery" fee of $550 ($685 in Alaska).

Introduced earlier this year at the North American International Auto Show, (which stands for Subaru Tecnica International, the high performance and motorsports subsidiary of Fuji Heavy Industries Ltd., Subaru's parent company) goes on sale at the end of May.

Subaru says this is the most powerful car it's ever offered for sale in North America, adding that the WRX STi draws "motorsports technology directly from Subaru expertise in World Rally Championship (WRC) competition."

The WRX STi is powered by an intercooled and turbocharged 2.5 liter DOHC boxer engine with Active Valve Control System (AVCS), variable valve timing, and an intercooler manual control water spray system delivering 300 horsepower at 6000 RPM and 300 lb-ft. peak torque at 4000 RPM.